Australia needs a more sustainable, comprehensive and national approach to managing natural disasters, according to IAG MD and CEO Mike Wilkins.

He says the Productivity Commission’s inquiry into natural disaster funding provides a once-in-a-generation opportunity for the Government to change its approach.

“I’m hopeful the inquiry will move us in the right direction but we must act in the national interest and cut through the discussion over federal and state responsibilities,” Mr Wilkins told the Trans-Tasman Business Circle last week.

The review is a chance to create a more effective model directed at preventing loss of life and property, rather than just repairing damage afterwards, he argues.

Mr Wilkins says the average annual government spend on disaster recovery is $560 million, 10 times the amount spent on preventative infrastructure such as flood levees.

Disasters cost about $6.3 billion a year, and that is likely to grow to $23 billion by 2050 due to population growth and movement to high-risk regions such as Queensland.

“Our government, like many governments worldwide, has focused on post-disaster relief – writing cheques for disaster recovery rather than investing in preventative measures,” he said.

IAG is a founder member of the Australian Business Roundtable for Disaster Resilience & Safer Communities.

Mr Wilkins says the group’s submission to the inquiry will build on its three key recommendations, including establishing a national resilience adviser within the Department of Prime Minister and Cabinet and a business and community advisory group.

It wants long-term funding for preventative infrastructure and community education, plus identification and prioritisation of activities.

Mr Wilkins says natural disasters are normal in Australia. “While we can’t change the fact they occur, we can find ways to reduce their impact.”